German wafer maker Siltronic has raised its outlook for 2026, saying stronger demand for the silicon wafers at the heart of computer chips — driven above all by artificial intelligence — lifted its third-quarter sales and changed the shape of the chip market.
The Munich-based company now expects full-year 2026 sales to be in line with the previous year, at around €1.34 billion. That replaces its earlier guidance for a low- to mid-single-digit percentage decline, and, according to Reuters, it is the second time this year Siltronic has lifted its annual sales forecast.
Third-quarter sales reached €355.4 million, up 10.5% from €321.6 million in the second quarter, Siltronic said in a statement on November 4, 2026. Sales for the first nine months of 2026 totalled €983.5 million, slightly above the €975.1 million reported in the same period of 2025. The company also narrowed its expected earnings margin, forecasting an EBITDA margin of 22% to 24%, compared with 20% to 24% previously.
Why AI is changing who gets chips
Silicon wafers are the thin discs on which semiconductors are built, and Siltronic is one of the world’s largest suppliers. Its chief executive, Michael Heckmeier, told Reuters that demand is rising for 300 mm wafers, the format used for the most advanced chips, and increasingly for 200 mm wafers too, helped by added 300 mm capacity in Singapore.
But the AI boom is also reshaping who gets served first. Heckmeier said chipmakers have an incentive to direct supply to customers offering the best returns, and that hyperscalers — the big cloud and AI companies — have the financial capacity to pay more for AI-related chips. That leaves less supply available for smartphone and PC markets, even though underlying demand there remains solid.
AI server farms consume roughly three to four times more silicon area than traditional servers, Heckmeier said, which is why the build-out of data centres has such an outsized effect on wafer demand. He also said he had seen no slowdown in AI demand as of November 4, and that if demand were to moderate, chipmakers could redirect capacity back to smartphones, PCs and other markets.
What the raised outlook does — and does not — say
It is important to read the upgrade precisely. Siltronic is no longer forecasting a decline in 2026 sales, but it is not forecasting growth either: sales are expected to land in line with the previous year. The revised outlook also assumes a euro-dollar rate of 1.14 for the fourth quarter, compared with 1.18 assumed for the second half in the previous outlook, so favourable currency movements played a part alongside stronger wafer volumes.
The quarter was not uniformly positive. Seeking Alpha reported a third-quarter GAAP loss per share of €1.46, a reminder that higher sales and a better outlook do not automatically mean a profitable quarter.
Why it matters
For readers, the story is less about one German supplier and more about a bottleneck moving up the supply chain. Earlier AI coverage focused on headline chip designers and data-centre builders; Siltronic’s results suggest the AI build-out is now lifting upstream suppliers too, while squeezing the availability of chips for everyday devices. If AI demand stays strong, phone and PC makers may keep competing for a smaller share of capacity. If it cools, capacity could flow back — which is why Heckmeier’s comment that no slowdown is visible yet is the line markets will watch next.
What to watch next
Siltronic’s financial calendar lists preliminary 2026 figures for February 3, 2027, which will show whether the full-year outcome matched this upgraded outlook. Watch also for any change in wafer pricing or allocation, and for whether smartphone and PC chip supply loosens or tightens further in the fourth quarter.
Frequently asked questions
What does Siltronic make? Siltronic makes hyper-pure silicon wafers used as the base material for semiconductor manufacturing.
What changed in its 2026 outlook? It now expects 2026 sales in line with the previous year, instead of a low- to mid-single-digit percentage decline, and narrowed its EBITDA margin outlook to 22% to 24%.
Why does AI affect wafer demand? AI server farms use roughly three to four times more silicon area than traditional servers, according to CEO Michael Heckmeier, so data-centre growth drives disproportionate wafer demand.
Does this mean phones and PCs will run short? Not necessarily, but Heckmeier said hyperscalers’ AI chip buying leaves less supply available for smartphone and PC markets while AI demand stays strong.
Sources:
- Siltronic AG press release, “Siltronic slightly raises sales guidance for 2026”, November 4, 2026: https://www.finanzwire.com/press-release/siltronic-ag-etr-de000waf-siltronic-slightly-raises-sales-guidance-for-2026-higher-demand-drives-volume-development-in-q3-2026-1TNLb8A9b4S
- Reuters, “AI boom draws chip supply from other end-markets, Siltronic CEO says”, November 4, 2026: https://www.reuters.com/business/ai-boom-draws-chip-supply-other-end-markets-siltronic-ceo-says-2026-11-04/
- EconoTimes, “Siltronic Raises 2026 Sales Outlook as AI Demand Pressures Chip Supply”, November 5, 2026: https://econotimes.com/Siltronic-Raises-2026-Sales-Outlook-as-AI-Demand-Pressures-Chip-Supply-1771036
